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Detention Basin Holliday 3rd Ad D~~@;E ~~~ MEMORANDUM May 26, 2004 a "- ;ç. -c f'v -J 2è:: TO: The Honorable Mayor and City Council Members -° >~; èD ~, --J FROM: Michael C. Van Milligen, City Manager SUBJECT: Holliday 3rd Addition - Detention Basin Requirements Holliday 3rd Addition is a commercially zoned development that includes the extension of Holliday Drive to the south. Because the development exceeds an acre, per City policy, stormwater detention is required. The site is directly adjacent to the NW Arterial Detention Basin and all drainage from the site flows to the basin. Assistant City Engineer Gus Psihoyos recommends City Council approval of a seNice agreement with QHQ Properties, whereby the City will provide detention basin seNices for a fee in the amount of $62,250, and beginning in 2005, the City will receive an annual payment starting at $4,120 and increasing by 2.5% each year thereafter. A review of the Drainage Basin Master Plan and the hydrologic model produced by HDR indicates that the Northwest Arterial detention basin can accommodate the additional stormwater runoff from Holliday 3rd Addition without changing the functionality of the detention basin; the peak flow of runoff out of the detention basin will not change. I concur with the recommendation and respectfully request Mayor and City Council approval. /1~J;{ ~AJA MicHael C. Van Milligen '---- MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Gus Psihoyos, Assistant City Engineer ~ ~~~ MEMORANDUM May 20, 2004 FROM: Michael C. Van Milligen, City Manager Gus Psihoyos, Assistant City Engineer ~ TO: SUBJECT: Holliday 3rd Addition - Detention Basin Requirements INTRODUCTION The purpose of this memo is to seek the City Council's approval of the proposed STORMWATER FACILITIES FEE AGREEMENT between QHQ - the developer of Holliday 3rd Addition - and the City of Dubuque. BACKGROUND Holliday 3rd Addition is a commercially zoned development that includes the extension of Holliday Drive to the south. Because the development exceeds an acre, per City policy, stormwater detention is required. The site is directly adjacent to the NW Arterial Detention Basin and all drainage from the site flows to the basin. DISCUSSION To meet detention basin requirements, QHQ asked City Engineering about the possibility of utilizing the City's detention basin instead of constructing a new detention basin of their own. The NW Arterial detention facility, located just south of Holliday 3rd Addition, has been functional since the spring of 2002. A review of the Drainage Basin Master Plan and the hydrologic model produced by HDR indicates that the NW Arterial detention basin can accommodate the additional stormwater runoff from Holliday 3rd Addition without changing the functionality of the detention basin; the peak flow of runoff out of the detention basin will not change. The basic premise of the agreement is that the City will provide detention (a seNice) and QHQ will reimburse the City for the cost of the seNice. The seNice fee has three components. 1) Cost to Construct the Detention Basin QHQ property totals 40.9 acres, making up twelve and three tenths percent (12.3%) of the 332.8 acres that contribute stormwater runoff to the NW Arterial detention basin. Therefore, QHQ will pay to the City of Dubuque 12.3% of the City's cost to construct the basin. At the time of execution of this agreement, QHQ will make a one-time payment to the City of $62,250.00. Table 1 shows a summary of the fee calculation. Table 1. City's cost to construct the NW Arterial detention basin and QHQ's prorated share. Activity Cost Year $ 212,618.27 2002 $ 85,624.01 2003 $ 44,736.34 02-03 $ 105,000.00 1985 $ 58,500.00 NA $ 506,478.62 Construction Construction Engineering Property Acquisition - North Property Acquisition - South (estimated) TOTAL Total Acres SeNed Cost per Acre QHQ Acres þHQ Share (payment to the City) 332.8 $ 1,521.87 40.9 $ 62,238.43 12.3% 2) Cost of Detention Basin and Drainage Channel Maintenance Maintenance presents another cost associated with a detention basin. Cost for maintenance includes such items as mowing, riprap maintenance, debris removal, sediment removal, and the City's cost to maintain the downstream channel. To help pay for the maintenance, QHQ's (or their successors) will make annual payments to the City equal to 12.3% of the estimated annual maintenance cost Annual payment will be due on January 1, 2005 and will increase by 2.5% each year. The cost for this maintenance for the first year of the agreement will be $4,120.00. RECOMMENDATION I recommend that the City enter into the agreement with QHQ. BUDGET IMPACT Per the terms of the agreement, the City will receive a payment of $62,250.00. In addition, beginning in 2005, the City will receive an annual payment starting at $4,120.00 and increasing by 2.5% each year thereafter. ACTION REQUESTED I respectfully request that the City Council authorize City staff to enter into the seNice agreement with QHQ Properties whereas the City will provide detention basin seNices so that Holliday 3rd Addition meets the City's detention basin requirements. attachment Prepared by Deron Muehring cc: Cindy Steinhauser, Assistant City Manager Dawn Lang, Budget Director Laura Carstens, Planning SeNices Manager Kyle Kritz Associate Planner Deron Muehring, Civil Engineer II Tim Quagliano, QHQ CITY OF DUBUQUE STORMWATER FACILITIES FEE AGREEMENT THIS AGREEMENT made and entered into this '2'1 day of !J1v1-i( , 2004, by and between the City of Dubuque (City) and ---Cit-r ~~....v-. /:)/4,14 ýJlrf (Owner) whose address is '3l("]o 7)"Py >h Í(N';t /, r:¿br'" '::fA-. S'Zv<'f WHEREAS, Owner is proposing to construct the following development (the Project): , Description of Project Cov...iWif-aL+-f Ð~e1ø i7~ Address of Project ¡v'øt<-Hc",~+- ~:7rP ;'--*""71 M, and WHEREAS, City policy requires that a development such as the Project include the construction of a private stormwater detention facility to mitigate the increased volume and flow of stormwater runoff caused by the Project; and WHEREAS, City constructed, owns, and operates the NW Arterial Detention Basin; and WHEREAS, City owns and maintains the Drainage Channel between the project and the NW Arterial Detention Basin; and WHEREAS, Owner desires to have the benefit of the seNice of the NW Arterial Detention Basin and the Drainage Channel and agrees to pay City for the cost of such seNice. NOW, THEREFORE, in consideration of the terms, conditions, covenants and performances contained herein, the parties hereto agree as follows: 1. City agrees to operate and maintain the NW Arterial. Detention Basin and the Drainage Channel immediately downstream of the Project to detain stormwater runoff from the Project and other upstream properties that total 332.8 acres. City's cost to construct the NW Arterial Detention Basin was $506,478.62, or approximately $1,522 per acre. 2. Owner shall pay the City at the time of execution of this Agreement a detention basin construction seNice fee in the amount of Sixty-two Thousand Two Hundred Fifty Dollars ($62,250.00), based on $1,522 per acre for the 40.9 acres associated with the Project. 3. Commencing January 1, 2005, and on January 1 of each year thereafter, Owner shall pay to City an annual detention basin and 4. drainage channel maintenance fee for the maintenance of the NW Arterial Detention Basin and the Drainage Channel. The annual fee for 2005, shall be Four Thousand One Hundred Twenty Dollars ($4,120.00). The annual fee for 2006 and for each year thereafter shall be calculated by adding 2.5% to the fee for the previous year. [Fee for year 2006 = $4,120 + (2.5% x $4,120) = $4,223.00; fee for year 2007 = $4,223.00 + (2.5% x $4,223.00) = $4,328.58; and so on]. city shall not require Owner to provide on-site drainage detention facilities for the Project so long as City is providing the detention basin seNice for the Project 5. Owner agrees that nothing contained herein shall relieve Owner of the responsibility for providing adequate private drainage facilities on the Project site or the responsibility for discharging stormwater to a public drainage facility in accordance with plans therefore approved by the City. Owner shall prepare plans for and construct such drainage facilities in accordance with City's design standards and practices. 6. This Agreement shall be binding upon City and Owner and their successors, executors, administrators and assigns. 7. It is understood that the Owner will assign, sublet, or transfer its interests in this Agreement, but not without prior written consent of City, which consent shall not be unreasonably withheld. 8. Nothing herein shall be construed as giving any rights or benefits hereunder tq anyone other than City and Owner. 9. This Agreement supercedes all previous agreements, oral or written, between City and Owner and represents the whole and entire Agreement between the parties regarding this matter. This Agreement may not be altered, modified or amended except in writing, properly executed by an authorized representative of City and Owner. 10. If any section, clause or provision of this Agreement shall be held invalid, such invalidity shall not affect the validity of any other section, clause, paragraph, portion or provision of this Agreement 11. The construction, interpretation and performance of this Agreement shall be governed by and construed in accordance with the laws of the state of Iowa. Any action at law, suit in equity or judicial proceeding for the enforcement of this Agreement or any provision thereof shall be . ' instituted and maintained in a court of competent jurisdiction located in the County of Dubuque, State of Iowa. IN WITNESS THEREOF, the parties hereto have made and executed this Agreement the day, month, and year first above written. OWNER CITY OF DUBUQUE Gus Psihoyos Printed Name Assistant City Enoineer TRIe